Looking for anyone with experience in Apartment Complex Investing in Pittsburgh

Pittsburgh, Pennsylvania
Commercial Real Estate Investing
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Looking for anyone with experience in Apartment Complex Investing in Pittsburgh

Konstantin GinzburgPro Member
Member since 2021 · 376 posts · 242 votes

Good morning BiggerPockets,

I am currently entering the third year of my real estate investing journey. To this point, my portfolio has consisted of single family homes and 4-plexes within the Louisiana market. My goal is begin shifting towards small apartment complexes in the 10-20 unit range. I am open to several markets within the US; one of which is Pittsburgh, PA. I had previously lived in Pittsburgh while I was attending college at the University of Pittsburgh. My ideal property profile would be 1 or 2 bedroom units within the Squirrel Hill or Shadyside neighborhoods that caters to student housing for those attending Carnegie Mellon University. We have a lot of success renting our New Orleans property to Tulane graduate students and are hoping to recreate this business model with Carnegie Melon. I am currently looking for lenders, brokers, real estate agents, as well as those with experience renting in this area. Any referrals or introductions would be greatly appreciated. 

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Evan Polaski
Cincinnati, OH · Member since 2020 · 4k+ posts · 3k+ votes
2y

@Konstantin Ginzburg, while I can't help with specific experiences in Pittsburgh, I am hoping this will give you some general guidance to keep moving forward.

The 10-20 unit market tends to be very fragmented, meaning you will sometimes find these types of properties on the standard MLS, sometimes on LoopNet, sometimes listed directly with commercial brokerages that only use their own websites to list properties. Additionally, you are rarely going to find an "agent" in the traditional sense, to act as a buyers agent looking for deals for you. You can hire someone out of your own pocket, or offer to pay a commercial broker, but generally it will be on you or your employees to hunt down deals and network with brokers to be sure they are thinking of you when they get a new listing. Many commercial sellers are not anticipating paying a buyer's agent fee, but everything is negotiable.

Lenders: you are clearly into the commercial mortgage space now, so you are likely going to be working with local banks/credit unions and small regionals.  Fannie small Balance loans typically come in at the $1mm loan balance, so may be an option, and are typically available through commercial mortgage brokers, like a Northmarq, CBRE, etc.

Again, I know this isn't a direct reference, but hopefully helps with some more places to keep building your search.

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  • Evan Polaski
    Cincinnati, OH · Member since 2020 · 4k+ posts · 3k+ votes
    2y

    @Konstantin Ginzburg, while I can't help with specific experiences in Pittsburgh, I am hoping this will give you some general guidance to keep moving forward.

    The 10-20 unit market tends to be very fragmented, meaning you will sometimes find these types of properties on the standard MLS, sometimes on LoopNet, sometimes listed directly with commercial brokerages that only use their own websites to list properties. Additionally, you are rarely going to find an "agent" in the traditional sense, to act as a buyers agent looking for deals for you. You can hire someone out of your own pocket, or offer to pay a commercial broker, but generally it will be on you or your employees to hunt down deals and network with brokers to be sure they are thinking of you when they get a new listing. Many commercial sellers are not anticipating paying a buyer's agent fee, but everything is negotiable.

    Lenders: you are clearly into the commercial mortgage space now, so you are likely going to be working with local banks/credit unions and small regionals.  Fannie small Balance loans typically come in at the $1mm loan balance, so may be an option, and are typically available through commercial mortgage brokers, like a Northmarq, CBRE, etc.

    Again, I know this isn't a direct reference, but hopefully helps with some more places to keep building your search.

    1Reply
  • Jeremy TaggartBusiness Member
    Real Estate Agent · Pittsburgh, PA · Member since 2014 · 850 posts · 646 votes
    2y

    @Konstantin Ginzburg great rental demand there obviously, but the rent/price ratios aren't the greatest in Shadyside and Squirrel Hill. Has gotten pricey there. You'll have to put quite a bit down to have positive cash flow from day 1 in either of those areas. Decent amount of other areas close to the universities though that could work outside of the expensive areas. 10-20 unit is a good space. Big enough to not have to compete with house hackers/newer investors in the 2-4 unit space, but small enough where you aren't competing with institutional money. 

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  • Chris Pelc
    Investor · Philadelphia · Member since 2023 · 104 posts · 46 votes
    2y

    I have a connection up in the Pittsburg area who can help you out with sourcing off market property. If you'd like me to connect you with them, i would be more than happy to! 

    Just sent you a connection request. 

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